Azeri-MI Drilling Fluids Ltd

Azeri-MI Drilling Fluids Ltd have worked in the Oil Industry for 18 years, 14 of these have been within Drilling Fluids and prior to arriving in Baku I was the Managing Director of a UK based Drilling Fluids Company with a wide ranging portfolio of contracts including BP and in many ways this laid out an ideal training ground for Baku.

In August 2001 MI Drilling Fluids Ltd made a strategic purchase of the UK Company and I took over the role of Business Development for MI - UK. I joined Azeri-MI as General Manager in March this year and after only a very short time have come to enjoy the work, the people, and the culture.

My view is that Azeri-MI in now into it's second growth phase. Through substantial investment we have already established first class facilities and have a trained and experienced workforce - I have no doubt we can expand and develop the company in preparation for the expected increase in drilling activity over the next 5 years. Azeri-MI has also shown commitment to the local workforce with more than 90% Azeri personnel employed.

The key to our success will be expanding the company safely and I expect all our employees to practice what we train, getting everyone to work safety is one of my main objectives. I have also found Baku to be a tremendously positive place and firmly believe if the workforce are happy we do a better job all round. Our prospects are good the workforce is keen and we have tremendous support from SOCAR and MI L.L.C, and we are ready to take another large stride in Azerbaijan.

Company Background

Azeri-MI was established as a joint venture on 31st January 1997 between SOCAR (State Oil Company of Azerbaijan) and MI L.L.C. The company is a registered company within Azerbaijan and committed to excellence in the supply of drilling and completion fluids plus all the associated engineering services. These include the training of National engineers in the drilling fluids business and technology; the operation of manufacturing and processing plants to supply SOCAR and Western Oil Companies and the participation in the development of the National resources of Azerbaijan. The Company operates with the full financial and technical support of SOCAR and MI L.L.C.

Azeri-MI is geared to utilising and training local staff and over the past 8 months there has been a 30% increase in the total workforce to raise the numbers of local personnel employed to 110. All Azeri-MI Operations are conducted within the National boundaries of Azerbaijan, both onshore and in offshore Caspian locations and recently Azeri-MI has incorporated MI-Production Chemicals so now the complete spectrum of treatments for drilling wells to enhancing production rates can be provided.

Fluids Engineering and Technical Support

First class on-site engineering and technical support is offered by Azeri-MI to meet the challenging conditions of drilling in the Caspian Sea with only highly trained and experience project and field engineers employed. The MI L.L.C. Research and Engineering centre in Houston and International Technical Centre in Stavanger, Norway provide additional advanced technical support and more recently Technical Services Support has been established for the CIS region based in Moscow.

Manufacturing

Local material sources are used whenever possible and currently Barite, Bentonite, Lime and Calcium Carbonate are produced from the Azeri-MI Plant located at Lokbatan. More than 50,000 MT of Barite are produced per annum under strict QA/QC systems and as with all the products used and produced we ensure every finished product adheres to international API Standards.

Warehousing and Quayside

Facilities

Our excellent facilities at Lokbatan supply our field and offshore operations with material day and night to keep the rigs working. This combined with strategically situated supply bases at Primorsk and SPS, ensure we can supply, build and maintain continuous streams of drilling fluid and bulk materials.

Solids Control and Waste

Management

SWACO, a division of MI supplies a wide range of solids control services including as well as drilling waste treatment services (drill-cuttings fixation) and state-of-the-art "Clean-Cut" cuttings handling and storage equipment. Both semi-submersibles, the Istiglal and Dada Gorgud have this equipment firmly embedded in their rig infrastructure. These systems have assisted in the breaking of world drilling records. Another world first is part of the " Clean-Cut" system has been installed on a rig supply vessel to enable simple and direct environmentally safe cuttings transfer to boat containers.

IFE (Integrated Fluids Engineering)

Integrated Fluids Engineering (IFE) is an initiatve provided by MI L.L.C. and integrates both skill-sets within Swaco and Fluids to provide a complete "package". Our high caliber IFE Engineers are trained in all the services available and adds value by working synergistically with the Operators to reduce overall drilling project costs.

Azeri-MI is the largest and most inclusive fluids and fluids related company in Azerbaijan, and since 1997 has worked on most projects both onshore and offshore Azerbaijan. We provide an unparalled service through expertise, innovative technologies and dedication to the job.